Austin Wood Products Case Study

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A Case Study on Austin Wood Products

A Case Study Presented to the Faculty of the Ramon V. del Rosario College of Business Decision Sciences and Innovation Department

De La Salle University - Manila

In Partial Fulfillment of the Requirements for the Course SUPPMAN K31

By Herrera, Lorenzo V. 11224738
Kehyeng, Charise Jessica T. 11144394
Larracas, Danielle Dominique G. 11134917
Lim, Ma. Anna Emanuelle N. 11107669 Zialcita, Raphael Paolo

Prof. Willy Cuason

September 16, 2014


Summary of Findings
Background Information
Problem Statement if there are any
Analysis of Alternatives
Detailed Recommendations
Answer to Case Questions

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This then translates to a 50% chance of not having inventory available during job opportunities. Therefore, opportunity costs might occur. The indifference of the production managers' in these aspects of inventory control is alarming and should be acted upon.

Austin Wood Products should also define their organizational structure more clearly in terms of its centralization, functions and duties especially in terms of the production department. Where in the purchasing agent reports to the VP of Finance, but it is supposedly under production since it is highly involved in this.

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.


The company, Austin Wood Products (AWP), was founded by Michael Price. Michael realized the opportunity for custom-manufactured doors during the 1980's and was able to ride the fast-growing building industry during that time in developing his business initially in his home garage. As the company grew, the company was able to relocate to a number of places (such as Belton, downtown Austin, current location- Guadalupe Road in Austin). The current plant site composed of 90,000 sq.ft. now facilitates production,
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